Uzbekistan approves simplified 6% VAT for public catering, retail trade and services
Businesses in public catering, retail and services in Uzbekistan will be able to choose a 6% VAT rate with exemption from corporate income tax or remain under the current general tax system. The measure is expected to reduce the administrative burden and lower incentives to conceal turnover.
Uzbekistan's President, Shavkat Mirziyoyev, has endorsed measures aimed at streamlining tax administration for small enterprises, which include the implementation of a simplified Value Added Tax (VAT) payment system for specific sectors. This information was released by the presidential press service.
Under the newly adopted regulations, businesses operating in public catering, retail, and services will be presented with a choice: either pay VAT at a reduced rate of 6% and simultaneously receive an exemption from corporate income tax, or continue to operate under the existing general tax framework.
The government anticipates that these modifications will simplify tax calculations and payments for small businesses, alleviate their administrative burden, and diminish incentives